The impact of EU Cohesion policy on environmental sector sustainability in the Baltic states

This article analyses investment from European Union cohesion policy funds into the Estonian, Latvian, and Lithuanian environmental sectors during the budget period 2007-2013. Total investment from these funds in Estonia, Latvia, and Lithuania during that period will be about 14.7 billion euros, of which about 18 percent covers the environmental sector. The purpose is to analyse whether allocation of expenditure to the environment is sustainable. In their analysis the authors apply sustainability criteria based on the cost-benefit rule and the Environmental Performance Index (EPI). The main finding is that the Baltic States allocate least environmental funds to those fields found to be most relevant to sustainability.